credit card Archives - My Car Credit

Can I Buy a Car with a Debit Card?

Person buying a car using their debit card

If you’ve found your dream car, have enough savings in the bank, and haven’t yet considered looking at your different car finance options, you may want to seal the deal immediately by paying with a debit card.

However, whilst this may sound like the easiest method of buying a car, it might actually come with some complications.

Can you buy a car with a debit card?

Technically, yes, you can buy a car with a debit card. Buying a car with a debit card may be advantageous for you, provided you have enough cash in your account when you make the payment. Be sure that your bank doesn’t have a cap on the card’s daily spending limit, too.

That said, it’s not quite that simple. Some dealers simply won’t accept payment via debit card. There are a number of reasons why this could be the case. Firstly, there are fees that come with this process which can result in dealers losing net profit on a sale.

Secondly, debit card payments are riskier for them. If you, the buyer, dispute the sale for whatever reason, this can cost the dealer money – particularly if you only dispute the sale once you’ve driven the vehicle, which means that it can’t then be re-sold at its initial price.

Debit card vs finance

If you do intend to pay for your vehicle with a debit card, be sure to check that the dealer accepts this payment method prior to entering any negotiation. However, most drivers will benefit from car finance as an alternative to spread the cost of a new car. Get a car finance quote today for a better idea of your budget.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

5 Different Ways to Pay for a Car

white car in dealership being bought using a car loan

Once you have taken a test drive in your shiny new motor, it can be tempting to throw caution to wind and not worry too much about how you’re going to pay for it. Unfortunately, this is all too common for car owners across the UK. Before you sign on any dotted line, you should know how you aim to pay for the vehicle, whether you decide to hand over cash or take out car finance.

If you’re in the market for your next ‘new-to-you’ vehicle, take a look at the different ways to pay for a car.

How to pay for a car

Cash
As long as you’d have enough savings left over to cover other major purchases or unexpected costs in the future, paying cash is a great way to buy a car. Paying cash means that you own the vehicle straight away. If you get into financial difficulties, you have the option to sell the vehicle and keep the cash from the sale. If you have a car finance agreement such as a leasing or hire purchase, this isn’t possible.
If you don’t have quite enough savings to buy the car outright, you could use them to give you the biggest deposit possible, so you end up spending less on loan interest.
Before you pay cash, think about your future finances. Are you planning any other large purchases over the next few years, such as buying a house? If so, you may want to save some cash and consider financing the vehicle.
Hire Purchase
This option is increasingly popular for the purchase of new cars. Typically, you will put down a deposit of 10%, and then make fixed monthly payments over an agreed time period. This means that you won’t own the vehicle until the last payment has been made. However, this route does make purchasing a vehicle more manageable. Even those motorists with poor credit can get accepted for car financing.
Hire purchase agreements are convenient to arrange and can be competitive for newer vehicles. There is also a fixed interest rate and monthly payments with no annual mileage conditions or fines for wear and tear.
Personal Contract Purchase (PCP)
This type of car finance deal is similar to a hire purchase agreement, but you usually make lower monthly payments. With a personal contract purchase, you have an ‘optional final payment’ at the end of the car finance plan, often referred to as the ‘balloon payment.’ You are able to defer some of the cost of the car to be paid at the end of the plan, making the monthly payments cheaper.
Instead of getting a loan for the total cost of the car, you get a loan for the difference between its sale price and its predicted value at the end of the hire agreement.
In a PCP, you decide how much of a deposit you want to make and estimate your annual mileage and the length of the contract. Typically, this type of car finance plan is between 3 and 5 years.
At the end of the term, you can:
• Trade the car in and start over again;
• Hand the car back to the dealer and pay nothing; or
• Pay a final payment (balloon payment) and keep the vehicle.
Conditional Sale
A conditional sale is similar to a hire purchase agreement, but you pay higher monthly payments and don’t have a fee to pay at the end of the term. Like a hire purchase, you do not own the car until the car finance plan has been paid in full. Typically, you put down 10% of the car’s value as a deposit, and repayment terms last between 2 and 6 years, making this option ideal for those who want to keep the car at the end of the plan without paying a final fee.
Credit Cards
Using a credit card to buy your new car can be a cost-effective way of getting a new set of wheels that allows you to buy the car outright on the day. To buy all or a portion of a car with a credit card, you must first ask the dealer if they accept credit card payments as many do not. If they do, they could charge a hefty processing fee that you need to consider.
It is best to use a credit card that has a 0% interest offer to buy the car outright and then split the repayments over the interest-free period so that the balance is cleared by the time you’re due to be charged interest.
Putting your new car on a credit card gives you repayment flexibility as long as you meet the minimum payment every month. However, if you only repay the minimum repayment every month, it may take much longer to repay your borrowing amount.

Getting a car on finance? Here’s what to look out for

Before you take out a car on finance, here are a few things to look out for:

• Make sure you can afford the monthly payment – not just now, but for the whole term of the loan.
• Ask the lender what will happen if you struggle to pay one month, and what options you have if you couldn’t afford to pay.
• Compare the total cost of borrowing, including all charges over the full term of the loan.
• Compare interest rates from different lenders. Remember that a larger deposit usually means you have a lower interest rate.
• Consider working with car credit specialists to land the right finance plan.

Find out if you can get car finance

At My Car Credit, we aim to help you through every step of the car finance process to make the process as hassle-free as possible.
For an instant quote, and to see what car finance plan you can be eligible for, please use our simple car finance calculator.

We are open 7 days a week, and our website is full of helpful tips, guidelines and answers to any questions you have.
For more information, call us on 01246 458 810 or email us at enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

7 Advantages of Used Car Hire Purchase

How to Finance a Car in 4 Easy Steps

Can You Modify a Car on HP Finance?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car finance options car loan cash credit card hire purchase Jan24 PCP

Can I Pay a Car Loan with a Credit Card?

Woman paying her car loan using a black credit card online

Buying a car can be expensive. When you're in the market for a new or used vehicle, it's smart to shop around to ensure you're getting the right car at the best price. Part of this is considering whether to use car financing.

Unless you have enough cash stashed away to pay for your new ride, you’ll need a personal loan or car financing to complete the purchase.

If you’re feeling adventurous, you may be tempted to purchase the car through a credit card. But can you buy a new car with a credit card? Will you have to pay interest? They’re both good questions – here’s what you should know.

Can I buy a car with a credit card?

Since the Consumer Credit Act of 1974, there have been a lot of changes to the options consumers have when using a credit card. So, the simple answer is yes – you can purchase a card with a credit card. But before you do, you should find out if the dealership even offers that option.

A good early question is whether or not they accept credit cards. Most of the time, they won’t let you charge the entire purchase price of your car. Some dealers will have a limit on the value of an individual purchase, so check before you sign up.

The process of buying a car on a credit card is the same as buying anything else on a credit card. The full amount is charged to the card, and then you pay the credit card company back over time while paying interest on the outstanding amount.

Unlike some other loans, you won’t have to pay a set amount each month. This gives you more freedom to choose how much you pay back each month, as long as you meet the minimum monthly direct debit payments.

Are there downsides to buying a car on credit?

As mentioned previously, certain car dealerships may not accept credit cards as complete payment for a car purchase. If a dealership does accept credit card payments, be aware that there may be a surcharge, which is often an unexpected expense.

If you don’t qualify for a 0% rate with a credit card provider, keep in mind that the typical APR rate is 10-15%, which is higher than a typical bank loan. Since most 0% deals also only last a couple of years, it would be best to either pay off the card before the 0% offer ends or transfer the balance to another card. In this case, it can be difficult and time-consuming to keep on top of it to avoid unnecessary fees or unwanted credit card debt.

Top Tip: If APR is new to you, read our guide on car loan APR.

When should you consider buying a car with a credit card?

If you’re thinking about buying a new or used car with a 0% interest rate offer, then it can make sense to charge it to your credit card. Before you go this route, however, make sure you can afford to pay off your car quickly. If you don’t, you may end up paying standard APR rates – which are higher than the rates you’d receive from a good car financing company.

Secure, reliable car financing

While you can buy a car with a credit card, doing so isn’t always the right decision. With My Car Credit, securing reliable and affordable car financing has never been easier.

We’re a fully FCA-compliant credit card company, so our customers know exactly what they’re getting from us. We work with a range of motorists to find the right finance plan that suits their needs, from people with poor credit to those who are self-employed.

To get started on your tailored car financing, use our free car finance calculator and then apply to get a decision on car finance without impacting your credit profile. We look forward to working with you to help you pay for your next car.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Am I eligible for car finance?

How to Finance a Car in 4 Easy Steps

Is There a Maximum Age Limit for Car Finance?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car finance options car loan credit card Jan24

Can I Buy a Car with a Credit Card?

Man handing over blue credit card to buy a car

Buying a car can be expensive. When you're in the market for a new or used vehicle, it's smart to shop around to ensure you're getting the right car at the best price. Part of this is considering whether to use car financing.

Unless you have enough cash stashed away to pay for your new ride, you’ll need a personal loan or car financing to complete the purchase.

If you’re feeling adventurous, you may be tempted to purchase the car through a credit card. But can you buy a new car with a credit card? Will you have to pay interest? They’re both good questions – here’s what you should know.

Can I buy a car with a credit card?

Since the Consumer Credit Act of 1974, there have been a lot of changes to the options consumers have when using a credit card. So, the simple answer is yes – you can purchase a card with a credit card. But before you do, you should find out if the dealership even offers that option.

A good early question is whether or not they accept credit cards. Most of the time, they won’t let you charge the entire purchase price of your car. Some dealers will have a limit on the value of an individual purchase, so check before you sign up.

The process of buying a car on a credit card is the same as buying anything else on a credit card. The full amount is charged to the card, and then you pay the credit card company back over time while paying interest on the outstanding amount.

Unlike some other loans, you won’t have to pay a set amount each month. This gives you more freedom to choose how much you pay back each month, as long as you meet the minimum monthly direct debit payments.

Are there downsides to buying a car on credit?

As mentioned previously, certain car dealerships may not accept credit cards as complete payment for a car purchase. If a dealership does accept credit card payments, be aware that there may be a surcharge, which is often an unexpected expense.

If you don’t qualify for a 0% rate with a credit card provider, keep in mind that the typical APR rate is 10-15%, which is higher than a typical bank loan. Since most 0% deals also only last a couple of years, it would be best to either pay off the card before the 0% offer ends or transfer the balance to another card. In this case, it can be difficult and time-consuming to keep on top of it to avoid unnecessary fees or unwanted credit card debt.

Top Tip: If APR is new to you, read our guide on car loan APR.

When should you consider buying a car with a credit card?

If you’re thinking about buying a new or used car with a 0% interest rate offer, then it can make sense to charge it to your credit card. Before you go this route, however, make sure you can afford to pay off your car quickly. If you don’t, you may end up paying standard APR rates – which are higher than the rates you’d receive from a good car financing company.

Secure, reliable car financing

While you can buy a car with a credit card, doing so isn’t always the right decision. With My Car Credit, securing reliable and affordable car financing has never been easier.

We’re a fully FCA-compliant credit card company, so our customers know exactly what they’re getting from us. We work with a range of motorists to find the right finance plan that suits their needs, from people with poor credit to those who are self-employed.

To get started on your tailored car financing, use our free car finance calculator and then apply to get a decision on car finance without impacting your credit profile. We look forward to working with you to help you pay for your next car.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Can You Modify a Car on HP Finance?

I want to buy a car on finance, how much can I borrow?

How Do Balloon Payments Work?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 13.9%, annual interest rate (fixed) 13.85%, 47 monthly payments of £201.38 followed by 1 payment of £211.38 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,176.240, total amount payable is £9,676.24.

My Car Credit is a credit broker and not a lender.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car finance options credit card finance options Jan24

If you’ve found your dream car, have enough savings in the bank, and haven’t yet considered looking at your different car finance options, you may want to seal the deal immediately by paying with a debit card.

Can you buy a car with a debit card?

Debit card vs finance

Rates from 9.9% APR. Representative APR 12.4%

Related articles

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Require more help?

How to pay for a car

Getting a car on finance? Here’s what to look out for

Find out if you can get car finance

Rates from 9.9% APR. Representative APR 12.4%

Related articles

Excellent

Good

Fair

Poor

Bad

Require more help?

Buying a car can be expensive. When you're in the market for a new or used vehicle, it's smart to shop around to ensure you're getting the right car at the best price. Part of this is considering whether to use car financing.

Can I buy a car with a credit card?

Are there downsides to buying a car on credit?

When should you consider buying a car with a credit card?

Secure, reliable car financing

Rates from 9.9% APR. Representative APR 12.4%

Related articles

Excellent

Good

Fair

Poor

Bad

Require more help?

Buying a car can be expensive. When you're in the market for a new or used vehicle, it's smart to shop around to ensure you're getting the right car at the best price. Part of this is considering whether to use car financing.

Can I buy a car with a credit card?

Are there downsides to buying a car on credit?

When should you consider buying a car with a credit card?

Secure, reliable car financing

Rates from 9.9% APR. Representative APR 12.4%

Related articles

Excellent

Good

Fair

Poor

Bad

Require more help?